Single-tenant vs. Multi-tenant Architecture: Which Is Better?

One type of software architecture is not automatically better than another. When considering single-tenant vs. multi-tenant architecture and deciding between them, the specific needs of the individual tenant (customer) should determine the type of implementation.

To demonstrate how these two architectures work, let’s consider the familiar experience of looking for a place to live. Specifically, let’s pretend you’re trying to decide whether to buy a home or rent a house. 

If you like the layouts of the apartments you’ve toured, don’t mind sharing common walls, and think your life would be easier if things like maintenance, pest control, and landscaping were done for you, then having your own dedicated space as a tenant within a multi-tenant complex might be the right choice. 

On the other hand, if you want to customize your space, knock down walls, put in a new kitchen, fill your yard with apple trees, and enjoy the safety and security that comes with maintaining and protecting your own domain, then a single-family home may be a better choice for you. 

Like someone in search of a place to call home, a company that is trying to decide between single-tenant and multi-tenant architecture needs to consider what they want to do with the space once they move in. As you’ll learn below, the choice to go either way depends on a variety of factors. 

Single tenancy is a software architecture in which each tenant (customer) is completely isolated from all other tenants, with no sharing of any kind (similar to someone living in a single-family home). 

Single tenants get their own instance of an application, either onsite or in the cloud, along with their own dedicated database and server. When tenants are 100% isolated in this way, it reduces risk and gives the single tenant the flexibility to create a customized solution. The infrastructure can be quickly scaled to meet their exact needs without them being concerned about how it may impact other tenants. 

Knowing they are the only tenant, a single tenant can also feel comfortable about bringing their own secure data into the application. This is often the right choice for companies that need to protect the personal identifiable information (PII) of their customers, such as in banking and healthcare.

A popular option for SaaS solutions, multi-tenancy is a software architecture where multiple tenants (customers) share the same instance of an application, as well as the corresponding database and server. 

Similar to someone being a tenant in an apartment complex, multi-tenancy is often referred to as “taking a seat” on the platform, where every tenant has access to–and uses–the same resources.  

When a customer decides to be part of a multi-tenant solution, they do so understanding that they are giving up control over the infrastructure and must use the same application and (usually) the same database. The same multi-tenant infrastructure contains a logical separation of data and configuration, whereas single tenancy provides physical separation. One refinement that can occur, depending on the capabilities of the software, is that tenants may be able to have their own dedicated database while still sharing the application. Multi-tenant architecture can be the right choice for business processes, communication networks, human resource tasks, and more. Customers can be large or small and based all around the world while sharing the same setup. Some examples are Hubspot, Salesforce, or Github, as well as consumer-facing companies like Netflix. 

As explained above, the key differences between these two software architecture types are illustrated below.

While it seems easier to implement the cookie cutter approach of a multi-tenant solution, it may not be the best solution for companies that need more flexibility and control. If you’re trying to decide between single-tenant and multi-tenant architecture, it’s a good idea to remember that what another company considers an advantage may not be an advantage for you. 

Companies that choose single-tenancy may do so because they prefer these advantages: 

• Full control 

• Improved security

• Customization

• Easy backup and recovery

• Simplified migration to a new environment 

• No shared infrastructure or impacts from noisy neighbors

• Ability to hyperscale for enterprise-grade performance

Companies that choose multi-tenancy may do so because they prefer these advantages:

• Easy onboarding 

• Free maintenance, upgrades, and fixes 

• The benefits that come from economies of scale

• Shared learning of all tenants

• Lower costs due to shared infrastructure and resources

Ping Identity offers capabilities to support your needs related to single- and multi-tenancy architectures. Check out our authentication authority, directory services, and access management capabilities pages to learn more.